Did you know that it costs a business 5x more to acquire new customers than it does to keep existing ones? That’s why customer retention is so important when trying to run a successful restaurant. According to Harvard Business School, increasing customer retention rates by only 5% will increase a company’s profits by 25-95%. That’s a whole lot of profit! Retaining guests doesn't have to be a challenge. You can start combating guest churn and increasing your profits by implementing these tips into your restaurant today! Here are 6 ways to start encouraging repeat guests:
Analyze Why Guests Stop Interacting with Your Restaurant
The best way to figure out why something isn't working is by facing the problem directly. This can be done by analyzing guest reviews or directly asking them why they stopped visiting your restaurant. By doing so you’ll demonstrate to your guests that you care about their opinions and needs while also learning how to create a better experience. 68% of customers decide not to return to a business because they think the company doesn’t care about them. Communicating with your guests in this way will solve two problems at once.
Engage With Your Customers
An effective way to retain guests is by actively engaging with them! A common technique known as relationship marketing is very helpful for giving guests a reason to keep coming back. Customer engagement should be performed through all channels of communication. This can be through social media, email marketing, SMS marketing, in-store interactions, offers, and more. Forming a relationship with your guests will gain their trust and encourage them to keep up to date with your business. It may even encourage them to join your loyalty program!
Loyalty Programs
Not only are returning guests cheaper to maintain, but they’re also higher spenders. A loyal customer's check will be 67% higher than a first-time guest's. Loyalty programs and incentives will encourage customers to return and prevent them from churning. Customers are 54% more likely to pursue future purchases after their third visit to your restaurant. Loyalty programs with point systems give guests a reason to return and make the trip worth it. Earned freebies and rewards ensure a happy guest!
Focus on Service
Customer service has a high impact on the rate at which a guest will return. Someone is much more likely to stay loyal if they had a good experience. The fate of this relies highly on your employees. Taking the extra time to focus on service and properly train staff will change your restaurant experience tremendously. Having employees trained for any situation will create a smoother process for them and prevent unhappy customers. This can also enhance the overall restaurant service rate by reducing wait times and unnecessary service issues. Having a digital restaurant platform like mobile apps, online ordering, and loyalty programs also enhances the guest experience as 54% of adults say purchasing takeout or delivery food is essential to the way they live, including 72% of millennials and 66% of Gen Z adults.
Make a Good Impression
A guest’s first impression will heavily impact their chances of returning. Their evaluation begins even before stepping foot into your restaurant. It’s important to present your business in a welcoming and professional manner at all times. Whether it be on your website, restaurant app, social media, or in-store you’ll always be making an impression. Creating a personalized, branded experience matters when keeping guests engaged and interested. Decide on the ideal experience you’d like your guests to endure and strive towards making that happen. A happy customer is a returning customer!
Invest in Churn Management
What if there was a way to make retaining guests easier? There is! With churn management software working alongside you, you’ll never have to worry about another guest churning. The unique program powered by artificial intelligence works overtime analyzing guest data to make your job much easier! The artificial intelligence algorithm will identify at-risk guests and send out automated targeted offers to ensure they come back before they stop interacting with your brand with a 4x efficiency rate! That's churn management done right! With these 6 tips, you’ll have the power to stop lost revenue and maximize your profits!
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